Legislators seek to give alcohol tax to nonprofit

Matt Dixon

Sunday

Apr 29, 2012 at 12:08 AM

TALLAHASSEE - It has become an annual event.

Since 2009, there have been continued unsuccessful attempts to pass legislation that would sweep about $40 million in taxes paid on alcohol sales to the Florida Endowment Foundation for Florida's Graduates.

The legislation has either been filed by state Sens. Stephen Wise, R-Jacksonville, or Gary Siplin, D-Orlando, who sit on the Flagler Beach-based nonprofit's board of directors. Had the bills passed, they would have created revenue stream roughly 35 times more than the $1.3 million in total revenue the Foundation averaged since its inception.

The foundation's executive director, Heather Beaven, is making her second run for Congress, this time in the newly drawn District 6 that includes St. Johns, Volusia, Flagler and Putnam counties.

The foundation operates three education-related programs. It helps at-risk youths graduate, recruits gifted female students and urges them to pursue careers in science and math, and has an anti-bullying program. It also operates VOICE, a center in Palatka that gives students real-life experience with things like journalism, composing and graphic design.

But is it a conflict of interest for the two senators to sponsor bills for an organization they serve as board members?

Beaven and others say no.

"I don't see a conflict in any of the efforts by my board members," Beaven said. "The foundation has helped over 20,000 kids who, without our help have a pretty decent shot at falling through the cracks or worse."

Others say it might be a conflict.

"It is reaching a gray area the public may want to be concerned about," said Dan Krassner, executive director for Integrity Florida, a nonprofit research institute.

He cut the Foundation's elected board member slack because they are not compensated.

"Where it becomes even a bigger issue is when a board member is receiving compensation," he said.

In a September 2010 Times-Union story about that year's effort to pass the alcohol bill, Wise said he understands how his involvement could be viewed as a conflict, but Siplin said he did not see a conflict. They did not return requests for comment for this story.

The legislation is not the only example of the foundation getting help from elected officials who also are board members. None of the assistance is against the Legislature's rules, and emails show it has played a big role in keeping the foundation afloat.

In late 2011, the organization was running on fumes and was considering big cuts to its program that helps at-youth students graduates. The woes came after the foundation's state funding was cut from $1.8 million to $900,000.

"As you know we are looking at shutting down a significant number of programs in the next month unless we are able to raise $335,000 immediately," Beaven wrote in a Nov. 14 email to undisclosed recipients.

She scheduled a Dec. 21 conference call with board members from the Jobs for America's Graduates, the foundation's national affiliate.

In a memo from Tom Tauke, a JAG board member and Verizon executive, to other board members explaining the conference call, he used the names of Wise and incoming House Speaker Will Weatherford, a non-voting foundation board member, to help alleviate concerns donors may have.

"Both men have promised us that they will do all they can to assure that adequate funding will be in place on July 1," it continued.

In a separate meeting, Weatherford, a Wesley Chapel Republican, met with Beaven and Siplin in his Capitol office to have a "funding conversation," emails show.

Weatherford said he is proud to be affiliated with the organization, and because he is not paid, and is not a voting member of the board, there is no conflict.

"I believe in transparency. I am involved in several different boards," he said. "As a citizen I like to participate in a lot of different areas. Everything I do is open and transparent."

He pointed to a 2007 opinion from the House general council that said a member could sit on a board as long as it's not "established by, organized by, operated primarily by, or controlled by a legislator or legislative employee, or any combination thereof."

He said he did not authorize his name to be used as part of the fundraising memo, and did not remember the funding meeting with Beaven and Siplin.

"I have probably 1,000 meetings a year on a ton of issues," he said.

The foundation received $315,160 in this year's budget, the same amount it got last year.

Other examples of help from politicians who are board members include Siplin and state Sen. Jeremy Ring, D-Parkland, reaching out to superintendents when the foundation wanted to increase program fees from local districts, and holding fundraisers tied to the names of Siplin and Wise.

There was a 2009 roast of Wise at Florida State Community College at Jacksonville to raise money for a charter school whose students take part in a foundation-run scholarship program, and a going-away party for term-limited Wise and Siplin on the picturesque 22nd floor of the Capitol in January.

When asked about the going-away party, which was held two days into this year's legislative session, Beaven said it was not a fund-raiser.

"Sponsors were asked to help offset the cost of the event including space rental, desserts and coffee," said Beaven, who says about 40 people attended.

When told emails show the event raised more than $10,000 - much more than it costs to rent the 22nd floor - she said any additional money " went to the Wise Scholarship Fund for our students."

"The foundation benefited only in the sense that some of our students will have some of their college expenses defrayed in the name of Sen. Wise," she said.

None of the help is against the Legislature's rules.

Beaven said there is nothing unique about her board.

"Every good representative and senator are on numerous boards. In fact, I would guess that my board members are on five-plus boards each," she said. "It proves to the people that they serve that they are supported, believed in and fought for by people they will never even meet."

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